AMSC Resilient Electric Grid System Program Moves Forward With New Funding Authorization
November 03 2015 - 8:15AM
AMSC (Nasdaq:AMSC), a global energy solutions provider serving wind
and power grid industry leaders, today announced the U.S.
Department of Homeland Security (DHS) Science and Technology
(S&T) Directorate awarded the company a contract
modification worth up to $3.7 million. This contract modification
serves as a bridge between the detailed deployment plan and
construction phases of the project. This brings total authorized
funding by DHS under the program to $5.2 million. The performance
period for this phase of the program under the contract
modification is expected to end in May 2017.
“This is a positive step for the program as we prepare for
construction,” said Daniel P. McGahn, President and CEO of
AMSC. “The design and configuration of the system is nearly
complete. We have also seen interest for the
product coming from Boston and Washington, D.C. as well as other
cities. This next phase allows us to start to purchase and qualify
key subcomponents of the system and to do critical engineering
tasks in order to ensure optimal system performance. It is
not anticipated that this work will be a gate to proceeding to the
construction phase of the project.”
This project is part of the work of the S&T Directorate at
DHS to secure the nation’s electric power grids and improve
resiliency against extreme weather, acts of terrorism, or other
catastrophic events. AMSC’s Resilient Electric Grid system is a
self-healing solution that provides resiliency in the event that
portions of the grid are lost for any reason. AMSC and ComEd are
working on a deployment plan to permanently install this advanced
technology in the electric grid serving downtown Chicago.
About AMSC’s REG system
In a typical urban infrastructure, power is produced at plants
that are located outside of the city limits. Power from those
plants travels through high voltage transmission lines until it
reaches a substation, where it is “stepped down” to distribution
voltages before being delivered to homes and businesses. Each
substation supplies power to an entire section of a city and, in
many U.S. cities, the substations are not connected to each other
and therefore cannot back up one another. Furthermore, each
substation can handle only a limited amount of capacity. Serving
additional load requires either substation expansions or the
construction of costly new substations.
The Resilient Electric Grid system offers a solution. The system
provides the dual benefit of increasing grid reliability while
simultaneously increasing grid capacity by accessing existing but
previously underutilized substation assets. The key component to
the REG system is AMSC’s breakthrough HTS cable system that
combines with other system design elements to increase the
reliability, redundancy, and resiliency of urban power grids,
greatly reducing the impact of equipment failure due to aging or
cyber-, physical-, or weather-related disasters.
About AMSC (NASDAQ: AMSC)
AMSC generates the ideas, technologies and solutions that meet
the world’s demand for smarter, cleaner … better energy™. Through
its Windtec™ Solutions, AMSC provides wind turbine electronic
controls and systems, designs and engineering services that reduce
the cost of wind energy. Through its Gridtec™ Solutions, AMSC
provides the engineering planning services and advanced grid
systems that optimize network reliability, efficiency, and
performance. The Company’s solutions are now powering gigawatts of
renewable energy globally and are enhancing the performance and
reliability of power networks in more than a dozen countries.
Founded in 1987, AMSC is headquartered near Boston, Massachusetts
with operations in Asia, Australia, Europe, and North America. For
more information, please visit www.amsc.com.
AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy are
trademarks or registered trademarks of American Superconductor
Corporation. All other brand names, product names, trademarks, or
service marks belong to their respective holders.
Forward-Looking StatementsThis press release
contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Any statements in this release about future
expectations, plans and prospects for AMSC, including, without
limitation, statements regarding our expectation that the
performance period for this phase of the program under the contract
modification will end in May 2017; our expectation that DHS will
provide a total of $60 million of funding for this program;
our belief that this is a positive step for the program as we
prepare for construction; our anticipation that this work will not
be a gate to proceeding to the construction phase of the project;
the expected benefits of the REG system; and other statements
containing the words "believes," "anticipates," "plans," "expects,"
"will" and similar expressions, constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements represent
management's current expectations and are inherently uncertain.
Actual results may differ materially from what management currently
expects because of many risks and uncertainties, including the
failure to complete this phase of the program by May 2017; the risk
that the funding provided by DHS for the program will be less than
currently expected or will not cover the portion of AMSC’s costs
that it currently expects; the failure to successfully complete the
work contemplated by the contract modification and/or REG project;;
the risk that the project will not proceed to the construction
phase; and the failure to achieve the expected benefits of the REG
system. These and other important factors discussed in the “Risk
Factors” section of AMSC’s most recent quarterly or annual report
filed with the SEC, among others, could cause actual results to
differ materially from those indicated by forward-looking
statements made herein and presented elsewhere by management from
time to time. In addition, any forward-looking statements included
in this press release represent AMSC’s expectations as of the date
of this press release. While AMSC anticipates that subsequent
events and developments may cause its views to change, it
specifically disclaims any obligation to update these
forward-looking statements. These forward-looking statements should
not be relied upon as representing AMSC’s views as of any date
subsequent to the date of this press release.
AMSC Contact:
Brion D. Tanous
CleanTech IR, Inc.
Phone: 978-842-3247
Email: Brion.Tanous @ amsc.com
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